Zero Beta

As TARP becomes more inevitable, I have stopped complaining about it and started to envision how exactly it would affect the economy.  I also decided to be less cynical, because at this point, it is too politically dangerous for people to be for such a plan if it wasn’t clear in its intentions (I want […]

You have no idea who is receiving the bailout and how it works.
There are way too many people around supporting this thing with ABSOLUTELY no clue of what it entails.  You can’t support something that you can’t explain.  It’s just not possible.  As a rule, the use of taxpayer funds to support failed companies is […]

I haven’t written all that much about the bailout because 1) I’ve been too busy.  2) There is not a shortage of information on the blogosphere as the coverage has been great - especially from naked capitalism and Calculated Risk.
Up until now, the media has been very careful in their word choice - using euphemisms […]

As everything is unwinding, it appears this time around Wall Street bought the same type of crap it had been selling for years.  The seeds were sewn as the quants moved in - developing quantitative models to manage complex derivatives.  The quants are not to blame, but their Ivy League backgrounds and their scientific models […]

As another day passes with no Congressional approval of Paulson’s bailout plan,  I am starting to believe that its becoming more probable that it will get unanimously voted down.  I must admit that at first I thought it would be more akin to the Patriot Act or the Iraq War, where both sides decide to […]

Governing today means giving acceptable signs of credibility. It is like advertising and it is the same effect that is achieved - commitment to a scenario.

-Jean Baudrillard
For every credibility gap there is a gullibility gap.

-Richard Cobden
Our alliances and our credibility are crucial elements of our working capital in advancing America’s interests in the […]

This week seemed to mark our arrival at some sort of tipping point and what lies ahead is looking more and more ominous not just for the markets but for America, society, and the world.  In a week where we observed the seven year anniversary of 9/11, I can’t help but think that it marked […]

First off, I have refrained from participating in the collective “shock” that has gone around the blogosphere on the Fannie and Freddie bailout thus far.  It came as no surprise to me and shouldn’t have come to many of the bloggers who have been talking about this for years and as far as bailouts go, […]

I just read a post on Frontal Cortex (hat tip Abnormal Returns) about a supposed “Passing Premium Puzzle” that is comparable to the well-known equity premium puzzle. I always enjoy posts comparing two types of games (in this case football and investing) as they sometimes allow you to gain additional insight into the dynamics of […]

This morning news came out that Hillary’s name would be placed on the ballot at the Democratic convention later this month.
Now that I am no longer working in finance, I don’t have the ability to follow the markets during the day much so most analysis is done after market hours, giving me less ability to […]